Solar Market and Cost Analysis

Stock Market Activity Solar stocks represented by the Invesco Solar ETF fell 14% to their Q4 low in late October amid expectations of higher PV construction costs before rising 30% by late November due in part to California's revised net metering proposal. After sliding more dramatically than the broader market in December, solar stocks ended down 3% for the quarter while the broader market ended up about 4%. However, solar stocks performed better over the entire year, down 7% versus down 20% for the broader market. Invesco Solar ETF (TAN) 40% 20% 0% -20% -40% -60% -80% 40% S&P 500 Index Russell 2000 30% 20% 10% % Change (Index: 01/04/21 Adjusted Close) 0% -10% -20% Q4 2022 Wy -30% -40% -50% Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Individual Stock Performance (Q1-Q4 2022) 80% 60% ןײין Atlantica Yield Sunworks SunPower Sunnova Sunrun Azure Power Ginlong SolarEdge Enphase Energy Soltec Power Array Tech. First Solar Solargiga Energy Tainergy Tech Jinko Solar Canadian Solar Shunfeng Wacker Chemie Daqo Meyer Burger Inverters Trackers PV Manufacturers Poly Equip. Yieldcos Installers Note: The TAN index is weighted toward particular countries and sectors. As of 1/18/23, 49% of its funds were in U.S. companies and 21% were in Chinese companies. Its top 10 holdings, representing 56% of its value, were First Solar, SolarEdge, Enphase, Sunrun, Xinyi, GCL, Array Technologies, Shoals, Daqo, and Encavis. Sources: Invesco (1/18/23); Mercom, Solar Market Intelligence Report (11/28/22); PV Magazine (11/22). NREL 44

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